SHANGHAI, Nov 12: China’s yuan remained little changed against the dollar on Tuesday after moving in a narrow range, continuing a trend of stability this month guided by the central bank.
Spot yuan traded at 6.0915 per dollar near midday, compared with Monday’s close of 6.0913.
The People’s Bank of China (PBOC) fixed Tuesday’s midpoint at 6.1360, or 0.05 percent stronger than the previous at 6.1390.
‘The PBOC’s official midpoint has barely changed over the past two weeks, signalling an intention to keep the currency stable for now,’ said a trader at a Chinese commercial bank in Shanghai.
‘The central bank’s attitude has offset the fact that there is still a big dollar supply in the market.’
The government posted better-than-expected October exports and trade surplus last Friday, helping explain the source of what traders have said was an overabundance of dollars.
As robust dollar supply keeps the yuan under appreciation pressure, the market is awaiting the PBOC’s guidance for another round of yuan rises, which traders said they expected in the second half of December.
The central bank has controlled the pace of yuan rises since the currency’s landmark revaluation in 2005, letting it mainly appreciate during major political events, such as Chinese leaders’ visits to the United States or participation in global events, while maintaining stability at other times.
(agencies)
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